Motorists in major cities are now facing fuel limits at some petrol stations as shortages spread beyond regional areas.
Supply pressures that have plagued regional Australia’s independent petrol stations for weeks are now washing into the country’s urban markets.
Customers at a Shell-branded Viva station on Sydney‘s Northern Beaches were limited to 50 litres per vehicle, with jerry cans and external tanks banned due to shortages, The Australian reports.
The masthead reports that other city petrol stations are doing the same.
Energy Minister Chris Bowen has repeatedly insisted the supply issues are being driven by a sudden spike in demand caused by panic buying, and that rationing is not needed.
‘We have as much fuel in Australia today as we had on the day Iran was attacked. We have had real issues, particularly in regional Australia, getting fuel to where demand has been very high,’ Bowen said.
‘We’ve seen very big spikes in demand. Some of that has been panic buying. Some people are trying to get ahead of expected price rises. Some farmers are stocking up, which is understandable.
‘But the fact is, if demand suddenly jumps dramatically, whether it’s for petrol, diesel or even toilet paper, supply chains come under pressure.’
Supply pressures that have plagued regional Australia’s independent petrol stations for weeks are now washing into the country’s urban markets
Energy Minister Chris Bowen insists fuel stocks are stable, saying surging demand is driving shortages
He said Australia had received all expected fuel shipments so far, although six deliveries scheduled for April had been cancelled, with some replaced by alternative sources as tensions in the Strait of Hormuz continue.
He said 74 of the 80 fuel shipments expected across April and May were still on track to arrive.
If the conflict drags on for several more weeks, Bowen said contingency plans are in place to manage supply risks, but rationing remains unlikely.
‘We have also said there are international supply risks going forward, but we are pretty well placed to deal with those risks. There is a range of actions available to government. Rationing would be an absolute worst-case planning measure. It’s not on the agenda.’
Bowen also ruled out a controversial $40 fuel purchase cap outlined in a 2019 national emergency fuel shortage response, which has resurfaced in recent days as one of the possible measures governments could consider if supplies were severely disrupted.
‘To introduce something like that, you would have to declare a national fuel emergency, which has never been done. I’ve already said I don’t envisage doing that. So it’s really not on the agenda.’
Some of the other measures in the fuel shortage plan focus on cutting demand before rationing kicks in.
Anthony Albanese will convene a second national cabinet meeting on the crisis on Monday, where demand-side measures, including working from home, carpooling and public transport concessions, are expected to dominate the agenda
These include urging motorists to carpool, adopt ‘eco-driving’ habits such as smoother acceleration and reduced air-conditioning use, and encouraging businesses to prepare contingency plans for a potential halving of their fuel supply.
The document also says the government could allow higher fuel prices to help curb consumption, on the basis that reduced supply would naturally push prices up and discourage unnecessary travel.
Bowen said: ‘Public restraint, public information campaigns and requesting people to save fuel would be the first step, and that only after that would any further actions be considered. I made clear yesterday, I think we’re a long way from that.’
Bowen confirmed 608 petrol stations were suffering from a shortage of at least one type of fuel, amounting to eight per cent of all fuel stations in the country.
Meanwhile, the average price of 91 unleaded has soared to 256.1c a litre, while diesel is at 312.1c.
Global oil supply has slowed this month after Iran blocked the Strait of Hormuz, through which about 20 per cent of the world’s oil passes, following attacks by the US and Israel.
Australia imports around 90 per cent of its refined fuel from overseas, mainly from Asia, but those countries source much of their crude oil from the Middle East.
Anthony Albanese will convene a second national cabinet meeting on the crisis on Monday, where demand-side measures, including working from home, carpooling and public transport concessions, are expected to dominate the agenda.
